Shaky Market Ahead - Protect Your Nest Egg and Remember These Two Rules! (Technorati) Technorati | (Del.icio.us) Del.icio.us | (Digg) Digg | (Blinklist) Blinklist | (Comment) Comments (0)


With all the hype of interest rates possibly tightening a few more times, the market has been treading on very shaky grounds lately. With the number of stocks declining far outweighing the advances this week, I think it is time to reiterate some of the most important investment rules. Here are two friendly reminders that will save you money in shaky times.

Rule 1: You can not control the market.
Thus you should not try. Instead focus your attention on going with the market flow. Take what the market is giving you, instead of trying to give a stock to the market. Do not be stubborn, especially in a market like this. Trying to force a loser stock to go back up by continuing holding it will get you in more trouble here.

Rule 2: Investing is more than just making money. Investing also includes not losing money.
You have to know when to take your profits. Nothing hurts more then watching your portfolio get crushed by a single stock that you still believe in and are trying to force the market to like. Take your profits and cut your loses when the economic indicators tell you too!

Remember, investing is half making money and half not losing it!

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